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Propex Fabrics Buys Key Competitor

January 6, 2006

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Propex Fabrics Inc. ha purchased fellow needlepunch manufacturer SI Corporation, including its SI Concrete Systems Corporation and SI Geosolutions Corporation divisions-. Ed Stanczak current Propex CEO, will continue to head the combined entity, which will be based in Atlanta. "It is our intention to create a highly diversified and balanced company which will become the best of the best. The intended combination is a classic example of two good companies combining to become one great company. This will be great for customers, employees, shareholders, and suppliers."
Joe Dana, current CEO of SI, will become the president of North American Operations with its headquarters located in Chattanooga, TN. Mr. Dana said, "The combination will create opportunities to leverage the capabilities of each organization to optimize operations and generate profitable growth. We will continue to be market driven and innovation focused with special emphasis on maintaining exceptional service to all customers."
The combined entity will be one of the world's leading producers of polypropylene-based fabrics for primary and secondary carpet backing, geosynthetic applications and a variety of other industrial end uses. The acquisition is expected to close by the end of January 2006.
Propex acquired in December 2004 by a group of investors led by Houston-based The Sterling Group, L.P., San Francisco-based Genstar Capital, L.P. and Houston-based Laminar Direct Capital, L.P., was formerly BP Amoco’s Fabric and Fibers unit It makes woven and nonwoven materials for the geotextiles, furniture, carpet backing and automotives markets. In 2005, needlepunched nonwovens sales reached $82 million.
SI Corporation operates through three platforms, SI Geosolutions, SI Concerte Systems and SI Furnishings. In 2004, nonwovens sales represented approximately 24% of total sales and were reported at $120 million.